NBU explains why hryvnia is falling

The recent hryvnia devaluation to UAH 22.50 to the dollar was caused by the dynamics of foreign currency proceeds and does not pose threat to monetary stability, Oleh Chury, the deputy head of the National Bank of Ukraine (NBU), said at a business forum in Kyiv on Tuesday.

REUTERS

"One day there can be more proceeds, other days - less. Last week, we were buying currency as we had received more foreign currency proceeds," Chury said.

The NBU adheres to a floating exchange rate policy, according to which such fluctuations are normal, he said.

"We have no intention of keeping the exchange rate fixed. Now we have a floating exchange rate, in a fairly wide range – UAH 21-23 to the dollar. This is 10%. It is ok if it fluctuates within this range," according to the deputy head of the NBU.

Chury also noted that the NBU together with the IMF has developed a plan on lifting restrictions on the foreign exchange market, which is not time-bound and depends on the achievement of certain macroeconomic indicators.

As UNIAN reported earlier, by the middle of trade at the interbank foreign exchange market on Tuesday, June 16, hryvnia quotes against dollar had settled at UAH 22.25/22.65 to the dollar, down by UAH 1.50 compared to opening quotes on Monday.

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